$BTC
After Christmas, can Bitcoin break through $90,000?!
The Chinese community has differing views on Bitcoin's short-term trend, with some traders worried that the resistance level of $90,000 may be difficult to break, and the market might enter a bearish adjustment.
Traders are concerned about the downward pressure caused by liquidity depletion before Christmas, as long positions in contracts continue to squeeze, exacerbating market volatility, while volatility has significantly dropped to historical lows.
The community's divergence stems from several key factors. Liquidity is the primary issue, especially during special times like Christmas or U.S. government shutdowns, where institutional participation decreases, market depth thins, and smaller trading volumes can easily trigger sharp fluctuations, amplifying the effect of price declines. This selling pressure due to liquidity depletion is also a common seasonal phenomenon in traditional financial markets.
Another core factor is the derivatives market, particularly perpetual contracts. When the market repeatedly encounters key resistance levels (like $90,000 or $100,000), a large number of high-leverage long positions can become very fragile. A slight price pullback can trigger a chain liquidation, leading to a “Long Squeeze,” a self-reinforcing mechanism that can sharply amplify volatility, even if the selling pressure in the spot market itself is not severe.
The market is still dominated by liquidity and sentiment, with prices in the short term being the result of a game of various forces—including leverage, spot demand, macro environment, and market psychology—working together. The real trend direction can only be confirmed after breaking through these short-term technical and sentiment disturbances.
Ultimately, in this seasonal low liquidity + high leverage environment before and after Christmas, the biggest fear is a “black swan” type of sharp volatility. In such situations, rather than stubbornly holding onto Bitcoin, it’s better to diversify and hedge in advance, at least for peace of mind.
Recently, I tried on-chain U.S. stock contracts and gold in the TradFi section of #bg, directly trading stocks of giants like Apple, Nvidia, and Tesla, or traditional assets like gold and foreign exchange. The operations are real-time, switching on the same account with fast execution speed and decent liquidity.
When Bitcoin is volatile, these assets often provide good hedging effects, significantly reducing the overall account volatility.
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